InvestorsHub Logo
Followers 30
Posts 2754
Boards Moderated 0
Alias Born 02/11/2018

Re: None

Tuesday, 06/07/2022 7:48:57 AM

Tuesday, June 07, 2022 7:48:57 AM

Post# of 391
SEARCH NEW PEA= 2.23 BILLION NPV!
earch Minerals Announces Positive Preliminary Economic Assessment for the Deep Fox and Foxtrot Rare Earth Element Project With $2.23 Billion NPV
https://www.globenewswire.com/news-release/2022/06/07/2457347/0/en/Search-Minerals-Announces-Positive-Preliminary-Economic-Assessment-for-the-Deep-Fox-and-Foxtrot-Rare-Earth-Element-Project-With-2-23-Billion-NPV-8.html
Net Present Value – NPV(8) of $2.23 B (pre-tax) and NPV(8) of $1.31 B (after-tax)
Internal Rate of Return (IRR) – 55.3% (pre-tax) and 41.5% (after-tax)
Capital Payback Period – 1.5 Years (pre-tax) and 1.8 Years (after-tax)
Initial Capital Costs - $ 422M
Approx. Annual production- 1437t - Magnet Rare Earths Oxides (Nd+Pr:1291t Dy:125t Tb:21t)
VANCOUVER, British Columbia, June 07, 2022 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY | OTCQB: SHCMF) (“Search” or the “Company”), is pleased to announce the results of its Preliminary Economic Assessment (“PEA”) for the development of its Deep Fox and Foxtrot Rare Earth Element (REE) deposits located in Labrador, Canada and the establishment of a Direct Extraction Hydrometallurgical processing facility on the Island of Newfoundland. The PEA was prepared by SLR Consulting (Canada) Inc. The technical report relating to the PEA will be filed on SEDAR within 45 days of this news release.

Key Financial Metrics (Unless otherwise indicated all values expressed in CDN$, Exchange rate CDN$1 = US$0.80):

The project net present value (NPV) of $2.23B (before-tax) and NPV of $1.31B (after-tax), at a 8% discount rate.
The pre-tax internal rate of return (IRR) is 55.3%, and the after-tax IRR is 41.5%.
The pre-tax capital payback is 1.5 years and after-tax capital payback is 1.8 years from start of production.
Initial capital costs: $422M (includes $61M contingency)
Life of Mine: 26 years. Annual mining production: 720,000t (at 2000tpd)
Net value: $756/t (net of process recoveries and payability terms)
Operating cost: $345/t (including third party separation charges)
The price for Magnet Rare Earth Oxides used: Neodymium oxide- USD$212/kg, Praseodymium oxide USD$201/kg, Dysprosium oxide USD$587/kg and Terbium oxide USD$2,493/kg.

HUGE IMHO! @$300MILLION revenue/year (prior to costs etc..) ! (Looks like Capex went for the whole ask! Adding Open Pit & Below Ground mining all in on $422Million Capex!) gotta read more & soak in!
Happily holding shares
Chico